SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16102 \ March 31, 1999
Accounting and Auditing Enforcement Release No. 1119 \ March 31,
1999
Securities and Exchange Commission v. Guido Volante and Miriam
Mercado, Case No. 97-9724-CIV-Graham
The Securities and Exchange Commission (SEC) announced that on
October 19, 1998 the Honorable Donald L. Graham, United States
District Judge for the Southern District of Florida permanently
enjoined Defendant Guido Volante by consent, from violating
Sections 10(b), 13(a) and 13(b)(2)(A) and 13(b)(5) of the
Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5,
12b-20, 13a-1, 13a-13, 13b2-1 and 13b2-2, thereunder. The Court
also permanently barred Volante from acting as an officer or
director of any issuer that has a class of securities registered
with the Commission pursuant to Section 12 of the Exchange Act or
that is required to file reports pursuant to Section 15(d) of the
Exchange Act. Based upon Defendant Volante’s sworn
representations in his Statement of Financial Condition submitted
to the Commission, the Court did not order him to pay a civil
penalty pursuant to Section 21(d)(3) of the Exchange Act.
On September 18, 1997 the Court permanently enjoined Defendant
Miriam Mercado by consent, from violating Sections 10(b) and
13(b)(5) of the Exchange Act and Rules 10b-5, 13b2-1 and 13b2-2,
thereunder. The Court also permanently barred Mercado from
acting as an officer or director of any issuer that has a class
of securities registered with the Commission pursuant to Section
12 of the Exchange Act, or that is required to file reports
pursuant to Section 15(d) of the Exchange Act. The Court left
the issue of civil money penalties open and on December 1, 1998,
based upon Defendant Mercado’s sworn representations in her
Statement of Financial Condition, submitted to the Commission,
entered an order that did not require her to pay a civil penalty
pursuant to Section 21(d)(3) of the Exchange Act.
The Complaint which had been filed on September 16, 1997 alleged
that Volante and Mercado were former principal officers of
Century Technologies, Inc., a Section 12(g) reporting company,
which had filed false and misleading periodic reports, press
releases and other public communications. The fraudulent
representations related to Century’s purported ownership of
certain feature films and feature film license rights and
improper recording of feature films and license rights as assets
on its balance sheet which resulted in the overstatement of the
value of the Company’s total assets by as much as 90%. Century
also failed to maintain books and records which accurately
reflected its financial condition and made misrepresentations to
its auditors. Volante and Mercado, who were Century’s president
and secretary/treasurer respectively, were the persons
responsible for Century’s illegal activities. On September 16,
1997, the Commission instituted and simultaneously settled cease-
and-desist proceedings against Century. Century consented to
cease and desist from committing or causing any violations and
future violations of Sections 10(b), 13(a) and 13(b)(2)(A) of the
Exchange Act and Rules 10b-5, 12b-20, 13a-1 and 13a-13
thereunder. (EA Release No. 39081, AAER No. 961)